Setting up a company
Foreign Investments in Spain
Foreign investors or entrepreneurs who are considering living in Spain or starting a business activity here, the first thing they ask themselves is how they can create the company.
What documents are needed? What steps do you need to take to set up a company?
We explain everything you need to know.
Another question that arises is whether to create a new company here or open a branch office.
Creating a company or opening a branch in Spain?
The first thing that a foreign entrepreneur who wants to operate in Spain should consider is whether it is convenient for him to do so through a Spanish company or under his own foreign legal company with the opening of a branch.
Both alternatives are subject to a very similar burden of accounting, tax and administrative obligations, but there are variations, and they must be taken into account when making one or the other decision.
The decision will depend primarily on operational and administrative issues. It varies from case to case
As always, it is best to be informed about your specific situation.
What kind of company? What aspects are important?
If you have decided to incorporate a company, you should consider what legal form to choose from the different types that exist in Spain.
Companies have their own legal Identification and limit the patrimonial responsibility of the shareholders with respect to the social debts.
The administrators in normal circumstances can be Spanish nationals or residents.
Classic composition of the administrative board.
The management and administration in Spanish companies can be managed by:
- A single administrator.
- Two administrators together or in solidarity
- Three or more directors forming a Board of Directors
Brief summary of the steps required to set up a company in Spain
It is necessary to look for a company name in the Central Mercantile Registry, decide on the social contribution and contribution of each of the partners, administration of the company, official address, drafting of the corporate purpose appropriate to the activity that the company wants to carry out, drafting of statues, opening a current account in a Spanish bank,… in short, a series of preliminary procedures that will allow us to sign the corresponding Deed of Set Up of the Company that will be accompanied by the Articles of Association that are the law of the company.
A tax number will be obtained for this new company.
With all this, it will be registered in the Mercantile Registry of the province where it has its official address.
It may be convenient in order to speed up the procedures and comply with legal requirements, to grant powers of attorney to an independent lawyer in Spain.
Compliance
The purpose of compliance is to reduce legal risks and guarantee the legal security of a business.
The term compliance refers to a set of measures and practices implemented in the internal operations of a company to prevent possible legal risks that could arise from the exercise of its own functions.
Social Sensitivity in Business Ethics
Every day an increasing number of private organizations internalize ethical and legal standards as mandatory good governance protocols.
Compliance with regulations by managers, employees and agents involved in the business activity
The regulatory compliance procedure consists of establishing the appropriate mechanisms to ensure that both managers, employees and any agent involved in the activity of the business comply with the regulations in the exercise of their corresponding functions.
In this sense, it is necessary to identify and classify the legal risks they face in order to then establish the instruments of prevention, control, management and reaction.
The regulatory framework is made up of:
- The laws applicable to the business sector.
- Internal policies.
- Commitments to customers, suppliers or third parties.
- Company codes of ethics.
There are many cases in which an action may be legal but not ethical.
We invite you to contact us to discuss your situation.
